The $35,000 device that celebrities and the super-rich use at home to stream movies still in theaters

What happens when you are rich and famous and want to see the
latest movies, but don’t want the hassle of going to the
multiplex? You call Prima Cinema.

As the debate over
Sean Parker’s plan that would allow you to stream first-run
theatrical movies for $50 a pop rages on, studio moguls in the
Hollywood Hills, top CEOs, and sports legends already enjoy
watching many of the current blockbusters in the comfort of their
living rooms and private screening rooms.

That's all thanks to Prima.

The six-year-old company has avoided the controversy attached to
Parker's ambitious startup, Screening Room, because it has
already sold Hollywood studios on its one-of-a-kind antipiracy
security. And then there’s the prohibitively expensive price.

To be a Prima Cinema customer, you must be willing to pay $35,000
to install its system and cough up $500 every time you want to
watch a movie.

How Cruise, Affleck, and Tarantino channel the old-school
Hollywood mogul

Tom Cruise is a member of
the "Bel Air Circuit" that brings first-run movies to
celebrities.Featureflash /
Shutterstock.com

The concept for Prima Cinema dates back to the old guard in
Hollywood during the 1930s.

The “Bel Air Circuit” is an exclusive exhibition
service used by movie executives and A-list stars in Hollywood
who are provided first-run movies at their homes at their
convenience.

It was created by studio heads like Louis B. Mayer and Daryl
Zanuck in the 1930s, when a projectionist with a screen and a
projector would travel around the swanky Bel Air area in Los
Angeles with 35mm or 70mm prints of movies still in theaters and
set up private screenings at the houses of the rich and famous by
appointment.

The circuit still goes on today for the likes of Tom Cruise,
Ben Affleck, Steven Spielberg, Quentin Tarantino, and Harvey
Weinstein, except now the movies are digitally streamed.

In the early 2000s, Prima cofounder and CEO Shawn Yeager, along
with his partners, realized that thanks to technology the Bel Air
Circuit could be expanded to a much wider net of rich people who
would love the luxury of watching first-run movies at home.

The San Diego-based company took two years not just to create a
set-top box that would prevent piracy, but also sell the studios
on handing over their most prized movie titles. Tough as it might
seem, Yeager and his partners had an unlikely ally: the 2008
financial collapse.

“In some ways it was perfect timing,” Yeager told Business
Insider. “It was probably the only time in the last 100 years
that due to the pain that bubbled from that you could convince a
studio that theatrical distribution in the home was viable.
Before then they would have just shut you down.”

By 2010, Prima had raised its first capital. Universal even
invested and provided the first titles for the service (other
studios have equity stakes). Now the company offers movies from
Universal Pictures, Paramount Pictures, Lionsgate, The Weinstein
Company, Focus Features, Samuel Goldwyn Films, Magnolia Pictures,
STX Entertainment, and Gravitas Ventures (it's still in talks to
show titles from companies like Disney, Warner Bros., and Sony).

Ultratight fingerprint ID security for '$1 billion worth of
assets'

The reason Prima got the backing of so many major studios is
simple: It created a secure path for studios to stream movies
directly to the Prima devices with, the company claims, zero
worry of piracy.

As Yeager puts it, Prima security has to be even more intense
than what movie theaters have.

"We have literally created the most secure distribution platform
for filmed entertainment in the world," he said.

Let's break that down: Prima doesn't just inspect its own
technology to prevent piracy; it also looks into the people using
it. A background check is done on all potential customers before
they can get their hands on a device, to make sure they have good
intentions. A "lengthy" contract, according to Yeager, spells out
the responsibilities of streaming the content from the studios.

If a customer owns a screening room, it can have no more than 25
seats. You must have a screen that's at least 100 inches on the
diagonal. You also need a static IP address and a fast internet
connection, because when you're paying this kind of money, the
last thing you want is a movie freezing in the middle of playing.

Because of that, all of the movies available on Prima for the
upcoming weekend are downloaded into the device three days in
advance.

"That means at any given point there can be between $300 million
and $1 billion worth of assets sitting in your home," Yeager
said.

Fingerprint ID security for the Prima
device.Courtney
Verrill

Then there's one last step to enjoy the service: Prima uses
biometric authentication to activate its device, meaning that the
company enrolls your fingerprint on the device so you will have
to swipe your finger every time you want to see a movie.

"We basically create a forensic trail from the time the film
leaves a studio all the way through the time a client purchases a
movie," Yeager said. "So your cousin that's in town can't just
sit down and watch a movie."

And if you ever wanted to bring the Prima to your cousin's,
forget it. The hard drive has been built to stay in one place
forever. At 65 pounds and made of mild steel, the device has
sensors, so if it's ever moved it would know.

It's all about the experience

Though Yeager would not reveal how many customers Prima has, he
did say that CEOs of major corporations, celebrities, and sports
stars are all among Prima owners. And often they're using it
multiple times a weekend.

"This one client tells us he'll watch the same movie four times
over a weekend," Yeager said. "He'll watch it on a Friday, his
kids will come by and watch it Saturday, then they'll have
friends over Saturday night, and then Sunday people from out of
town will watch."

Just a reminder: You have to pay $500 every time you watch a
movie on Prima, so that's a cool $2,000 spent over a weekend.

And the Prima experience is only going to improve this summer
when its 4k version comes out. To give you a sense of how that
will look, Blu-ray is an 8-bit format, and 4k Prima will be
12-bit (it's currently 10-bit).

"The new Blu-ray standard is just now getting to where Prima has
been for five years," Yeager said. "With the 4k, if you have the
equipment and build the room correctly, you will have the best
theatrical experience."

And it will come with a cost. You're probably looking at $50,000
to purchase the 4k version (at the moment, Yeager isn't planning
to change the $500 per-viewing price).

So why isn't Prima getting any flak in Hollywood? Simply put,
it's too high-end to hurt the theater business in any significant
way. Plus, the money to purchase titles goes straight to the
studios, which count it toward the films' box office.

"We have literally created an entirely new market segment that
didn't exist for this industry," Yeager said.

In other words, if you're, say, Brad Pitt, and you want to watch
"Jason Bourne" when it comes out this summer, you're almost
definitely not going to deal with the headache of showing up to a
public venue to do it. Especially if, like Brad Pitt, you can
fairly easily afford to download it with Prima.

From Yeager's point of view, Sean Parker's Screening Room is a
direct disruption to the current exhibition model. He doesn't
think the movie business will go for it simply because they don't
stand to make money off of it.

"The movie business is smart enough to realize that you never
want to trade analog dollars for digital pennies, which is what
would happen under that scenario," he said.

Asked if Prima would ever consider a scaled-down version of its
service that would be more affordable for the average moviegoer,
Yeager replied that "he'd never say never," but for now the
company is focused on bringing the full theatrical experience to
the home — with all the security and high-resolution quality that
entails.

"It's the experience that matters," he said. "That's what keeps
people coming back for films. And we think we have the best
experience in the world."